Renown Oil and Gas Ltd - Period Ending 2021-12-31

Renown Oil and Gas Ltd

Contents

Company Information	1
Statement of Financial Position	2
Notes to the Financial Statements	3 to 8

Renown Oil and Gas Ltd

Company Information

Director

JD Hamilton

Company secretary

Mrs KC Hamilton

Auditor

Azets Audit Services Chartered Accountants & Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Registered office

Dudley Lane Dudley Cramlington Northumberland NE23 7RH

Solicitors

Jacksons Commercial & Private Law LLP Innovation House Yarm Road Stockton on Tees TS18 3TN

Bankers

National Westminster Bank plc  4 Bridge Street Morpeth Northumberland NE61 1NG

Renown Oil and Gas Ltd

(Registration number: 06340098)
Statement of Financial Position as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	7	54,258	126,495
Current assets
Debtors	8	540,646	1,170,576
Cash at bank and in hand		53,380	5,003
		594,026	1,175,579
Creditors: Amounts falling due within one year	9	(265,113)	(930,159)
Net current assets		328,913	245,420
Net assets		383,171	371,915
Capital and reserves
Called up share capital		1	1
Profit and loss account		383,170	371,914
Total equity		383,171	371,915

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income Statement has been taken.

Approved and authorised by the director on 21 June 2022
 

......................................... JD Hamilton Director

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is Dudley Lane, Dudley, Cramlington, Northumberland, NE23 7RH.

The principal place of business is 23-24 Brindley Road, Hertburn Industrial Estate, Hertburn, Washington, NE37 2SF.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis. At the time of signing these financial statements there has been no unmanageable impact of COVID-19 on the company’s main income streams, employees and suppliers.

The company meets its day to day working capital requirements through cash generated from operations and group borrowings. At the year end the company had net current assets of £328,913 including cash of £53,380.

The company’s sales forecast for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

The directors believe that the company has adequate financial resources to continue in operational existence for at least 12 months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Government grants

Government grants relating to the costs incurred by the company are recognised in the income statement over the period necessary to match them with costs that they are intended to compensate. Government grants are presented separately and disclosed in Other operating income in the income statement.

Other operating income includes the UK Government assistance provided through Coronavirus Job Retention Scheme during the Covid-19 pandemic.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

	Asset class	Depreciation method and rate
	Leasehold property	10% straight line
	Plant and machinery	10% straight line
	Fixtures and fittings	15% reducing balance
	Motor vehicles	25% reducing balance
	Equipment	15% reducing balance

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 18 (2020 - 22).

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

4	Auditors' remuneration

	2021 £	2020 £
Audit of the financial statements	7,240	6,895

5	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2021  £	2020  £
Coronavirus job retention scheme grant	46,908	4,442

6	Loss/profit before tax

Arrived at after charging/(crediting)

	2021 £	2020 £
Depreciation expense	72,237	73,511

7	Tangible assets

	Land and buildings £	Fixtures and fittings £	Plant and machinery £	Office equipment £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2021	43,112	11,826	658,951	2,958	19,346	736,193
At 31 December 2021	43,112	11,826	658,951	2,958	19,346	736,193
Depreciation
At 1 January 2021	38,800	11,184	545,334	2,802	11,578	609,698
Charge for the year	4,312	95	65,865	23	1,942	72,237
At 31 December 2021	43,112	11,279	611,199	2,825	13,520	681,935
Carrying amount
At 31 December 2021	-	547	47,752	133	5,826	54,258
At 31 December 2020	4,312	642	113,617	156	7,768	126,495

Included within the net book value of land and buildings above is £Nil (2020 - £4,312) in respect of freehold land and buildings.
 

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

8

Debtors

	2021 £	2020 £
Trade debtors	91,020	36,192
Amounts owed by group undertakings	221,691	969,587
Prepayments	3,424	3,424
Other debtors	224,511	161,373
	540,646	1,170,576

9

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Trade creditors	10,222	14,880
Amounts owed to group undertakings	195,032	478,721
Taxation and social security	44,579	420,330
Accruals and deferred income	8,704	8,094
Other creditors	6,576	8,134
	265,113	930,159

10	Financial commitments, guarantees and contingencies

Amounts disclosed in the statement of financial position

Included in the statement of financial position are unpaid pension contributions of £Nil (2020 - £1,653).

11	Related party transactions

The company has taken advantage of the exemptions available under FRS 102, of not disclosing transactions with other members of the Renown Group. There are no other transactions which are required to be disclosed under the terms of FRS 102 for the current year.

12	Parent and ultimate parent undertaking

The company's immediate parent is Renown Group Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Renown Group Limited. These financial statements are available upon request from the registered office at Northumberland Business Park West, Cramlington, Northumberland, NE23 7RH.

Renown Oil and Gas Ltd

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

13	Audit report

The Independent Auditor's Report was unqualified.

The name of the Senior Statutory Auditor who signed the audit report on 5 July 2022 was Mark Brunton BSc FCA, who signed for and on behalf of Azets Audit Services.

Azets Audit Services is a trading name of Azets Audit Services Limited